Becoming A Trader

To me trading at a prop firm with 5k is better versus using 25k for futures. They are almost the same thing.

100 shares risk. 30 cents per day is 30 dollars Max loss
1 futures contract. 30 ticks is 300 dollars from what I know. (Like 30 cents on CL.)

I have not traded futures but I think I am at least close on the risk ratios for the minimum lots 100 shares AND 1 lot.


Either way you have to learn to consistently take money out of the market before trading bigger size
 
Hi,
I agree with everything everyone said previously, in the past I got wiped out due to getting scared or selling my winners after too short of a time frame. I also realized how I must set up guidelines for when to sell or how long to hold a profitable trade. I am going to learn more about futures, as recommended in the posts, and more about options. I also agree with how the best time to learn is when you don't have much capital and can come back again. I am not married either, so I figure now is the time to keep at it and study up! Thanks again to everyone, any more advice would be welcomed.
 
gabana - i strongly suggest staying away from nadex. i've looked at it and their is no reason to use it esp w/ the wide spreads. just stick to exchange listed futures and options that are highly liquid.
 
My advice: go look elsewhere, the time of manual trading has long passed. It's all computers now, mate. The people who have been trading for a long time, still know how to make money, but it's far, far from easy. Computers & algo's are getting better and better. Not a bright future for the newbies, kid. Sorry.
 
Quote from luckybastard:

My advice: go look elsewhere, the time of manual trading has long passed. It's all computers now, mate. The people who have been trading for a long time, still know how to make money, but it's far, far from easy. Computers & algo's are getting better and better. Not a bright future for the newbies, kid. Sorry.
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I just called my broker during lunch and sold gold futures. What is your problem? Most of the good traders I know use a full service brokers and they hold positions for weeks even months. What is your problem with that? I know this guy who is still calculating his edge using EOD quotes from IBD. What is your problem with that? He has bought more land in Miami with his trading profits than you can imagine. All with a $2 calculator and a daily newspaper. It's the IQ mate, not the computer that makes the money.
 
Quote from FrankSlaughtery:

gabana - i strongly suggest staying away from nadex. i've looked at it and their is no reason to use it esp w/ the wide spreads. just stick to exchange listed futures and options that are highly liquid.
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+1

If you want to trade options stick to standard options on major stocks, ETFs, and indexes where competition among market makers keeps the bid/ask spreads tolerable (preferably option chains with penny pricing). You have enough going against you without having to fight killer spreads.
 
Gabbana,

Us young traders should keep encouraging each other to make progress and move forward!

I myself am 22, and I have my own journal:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=221529

Another guy Shanb has his own journal and he's 23 (Hope you don't mind Shan!):

http://www.elitetrader.com/vb/showthread.php?s=&threadid=221906

Also, I have taken the time to look through some other young guys' journals and I've found that, if nothing else, reading them can be very encouraging!

Search Praetorian2's posts, he was 21 or younger when he got his start I believe, and another user with the name Steve Tvardek was 26. All very encouraging to me!

I'm sure there's way more too. Regardless, good luck with your trading!
 
in the spirit of encouraging others and providing actionable advice here's a true story from this past week...

i had shorted the spy via put options on 6/21 and closed out the trade yesterday late afternoon for a great gain (for the love of God please none of this "pics of it didn't happen". the advice is actionable w/o the pics. no offense but i don't care about impressing anonymous people on the interwebs. i do however care about helping others in a similar situation. ok enough disclaimer.)

the spy had hit my target (previous support at the bottom of the trading range (1300 resistance 1260 support) and even though i had a great gain i thought "i really need/want more $ i should hold on in case the market drops even more" or "i'd kick myself if the market crashed over the weekend and i was flat instead of short". let me tell you those exact same phrases have turned HUGE gains into HUGE loses so many times i want to vomit. i said to myself "remember what happened last time you did this. you made a plan and it's time to follow it. besides a 30% gain in a week in great. this is about singles adding up not the mythical home run". i won't be upset if the market crashes monday and i'm not short. i've accepted this could happen. it's better to cash in a gain and leave money on the table than let a realized gain (esp a big one) turn into a loss (esp a huge loss which can happen w/ a snapback rally when the mkt is oversold along w/ iv crush on a rally).

anyways i know this is a long post just trying to help out you guys. enjoy the weekend.
 
Quote from intradaybill:

I just called my broker during lunch and sold gold futures. What is your problem? Most of the good traders I know use a full service brokers and they hold positions for weeks even months. What is your problem with that? I know this guy who is still calculating his edge using EOD quotes from IBD. What is your problem with that? He has bought more land in Miami with his trading profits than you can imagine. All with a $2 calculator and a daily newspaper. It's the IQ mate, not the computer that makes the money.
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We're speaking different languages here. You're the guy selling futures during your lunch, because your style is much more investing than trading.

I'm the guy who has been professionally daytrading for 12 years now, executing hundreds of trades per day. My style has pretty much 0 to do with investing. In my type of business, there's not much chance of succeeding for newbies nowadays. The HFT movement has taken over.

However, computers have a lot more difficulty calculating the right investment decisions. But again, in my world, that's not called trading (though you'd probably call it 'swing trading' or something like that). .

One thing I'd like to add is about your remark about IQ. I disagree. I've met quite a few traders and investors in the 12 years that I've been trading, easily over 100, and one thing I know for sure is that IQ is not a factor. Well, the succesful ones have in common that they have at least something like 120 (they're smarter than average joe), but above that, it's really not the IQ that makes the difference ...Things like dedication and the psychology aspects become much more important there
 
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